DALLAS -- Just as Alon USA Energy Inc. closes on the purchases of 40 Good Time Stores to be folded into its Southwest Convenience Stores subsidiary, the Federal Trade Commission (FTC) is asking the for additional information about the company's recent acquisitions of Paramount Petroleum Corp. and Edgington Oil Co.
Alon on Wednesday announced that it has closed on its purchase of 40 Good Time Stores in El Paso, Texas. The purchase price for the 40 stores acquired was approximately $26 million in cash, including approximately $2 million for inventory.
Alon had previously announced its intention to purchase up to 55 stores; however, Alon chose to purchase only 40 stores due to certain rights of first refusal and purchase options applicable to 15 of the 55 stores. Alon, which currently operates 49 stores in El Paso, expects to convert the 40 acquired stores to the 7-Eleven and Fina brands and to supply motor fuels to the stores through its long-term pipeline capacity, connecting Alon's Big Spring, Texas, refinery directly to the El Paso market.
We are thrilled to be able to add to our current El Paso 7-Eleven stores the Good Time Stores, said Jeff Morris, Alon's president and CEO. We will invest in all of our El Paso stores to better serve our customers and employees. The acquisition further increases our physical integration with our Big Spring refinery, providing us further opportunities for growth.
Meanwhile, the FTC has issued requests for additional information in connection with its review of Alon's pending acquisitions of Paramount Petroleum and Edgington Oil.
Requests of this nature, referred to as second requests, are not unusual in connection with refinery transactions, the company said. The parties have been working closely with the FTC staff since shortly after the announcement of these transactions and intend to respond promptly to the second requests. Alon does not expect the second requests to result in a material delay in consummation of the transactions, it added.
The acquisition agreement between Alon and the stockholders of Paramount Petroleum provides for a termination date of Aug. 31, 2006. Alon and Apex Oil Co. Inc., the parent company of Edgington Oil, have agreed to extend the termination date for the Edgington Oil acquisition deal to no later than Sept. 29, 2006.
Paramount Petroleum, Paramount, Calif., is a major manufacturer and marketer of asphalt in the western United States. It operates a 54,000-barrels-per-day (bpd) refinery in Paramount. Long Beach, Calif.-based Edgington Oil, offers naptha, jet fuel, diesel fuel, vgo/gasoil, asphalt and fuel oil sales.
Dallas-based Alon USA Energy is an independent refiner and marketer of petroleum products, operating primarily in the Southwest and South Central regions of the United States. It owns and operates a refinery in Big Spring, which has a crude oil throughput capacity of 70,000 bpd. It markets gasoline and diesel products under the Fina brand and operates c-stores in West Texas and New Mexico under the 7-Eleven and Fina brands and supplies motor fuels to these stores from Big Spring. It is also a leading producer of asphalt in Texas.
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